This point is important to be clear when making a decision. Both are systems that decide to take certain companies to trade their products or services. Unfortunately too often tend to confuse, since normally their strategies are very similar and often overlap or are “camouflaged” one after the other. The biggest difference between one and the other requirements are in the company require you to pay you your commissions, bonuses, etc.. In a genuine MLM only three things you will be required to receive your income: 1. Eating monthly product or service from the company. The cost of that consumption should not exceed $ 140 or so.
2. Building a down-line beneath you to auto-consumidores like you and who wish to start in the business. 3. Teach and show the way you have taken and that you find is taking to achieve benefits for these people. In short teaching steps 1 and 2. At the precise moment that your company requires you to have to reach a certain volume of sales to get paid your commissions, score each time (can be monthly, quarterly, annually, etc.), integrate your team to a certain number of people or any other type of condition in 99% of cases were a direct sales company. What is a Direct Sales company: Basically, his philosophy and principle is the same as the MLM.
You’ll have to create a network of distributors under you. But notice I said “distributors” and not “autoconsumidores.” Therein lies the difference. While in the Multilevel your mission is to create a network of people who consume the product or service of the Direct Selling company will have to create a sales network. Today and today people usually enjoy shopping and eating all kinds of products, since that consumerism gives us a certain pleasure. Each person seeking its product and the pleasure it provides. But we reject the vast majority of cases we sell a product. So we like to buy not sell us. At that point is where the first difficulty faced by the initiate in the world of MLM. You do not have enough information, choose a direct selling company “camouflaged” Multilevel Marketing and the next day or within a few days is with his kit at home and realizing you have to start selling a product or service. That person usually has no knowledge of sales, marketing strategies. Do you really believe that success? I doubt it, but I have come across cases in which they have surprised even themselves from the commercial skills were saved, but the truth is that they are the vast minority of people. It’s not easy to sell products without adequate knowledge or sufficient experience. So make sure before entering the company if it is MLM or Direct Sales. I know many people frustrated when they realize their objective to generate revenue is affiliated to sellers. I assure you it is much easier to find 100 people who want to have their own business only to be autoconsumidores than 10 entrepreneurs who have good sales skills. Marcelo Velazquez.